Community Association Law

Third Quarter 1997

In This Issue

We hope to make your job easier by helping you sort out your legal concerns and problems.

Association Managers & Board Members

You are receiving A&K News because your Association participates in our "Community Retainer Program." Our legal services program provides to the board:

• Unlimited Phone Consultations to the Board
• One hour "Annual Check-Up" meeting with the Board
• A&K News sent quarterly to the Board Members
• Access to "No Cost Collections" Program; no cost to the Association

Construction Defect Litigation Clients

You are receiving A&K News because you are currently a "Single Family Home contingent fee litigation client" or a "Community Association litigation client."

• Class Actions - Single Family Homes
• For homeowners whose Associations are not responsible for maintenance of their homes.
• Homeowner Association
• The Association is responsible for maintaining and repairing the common areas.

Annual Retainer Fee...$750.00

Legislative Edition
Fair Debt Collection Practices Act...

An Emerging Source of Liability to Property Managers and Attorneys

by Carl H. Starrett and Joel M. Kriger

In a decision that could have far-reaching effects to attorneys and property managers, a federal judge in San Diego recently ruled that the Fair Debt Collection Practices Act ("FDCPA") applied to the collection of delinquent assessments. Property managers and attorneys should take special care to make sure they are in compliance with the FDCPA.

What is the Fair Debt Collection Practices Act?

The FDCPA was originally enacted on September 20, 1977 to protect consumers from abusive and oppressive practices of debt collectors.

Under FDCPA, the term "debt" is defined as:

"...any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family or household purposes, whether or not such obligation has been reduced to judgment."

How can a property manager be a debt collector?

A "debt collector" is defined in the amended Act as:

"...any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due to another."

There has not been a court ruling applying the FDCPA to a property management company. However, property managers use the mail on a regular basis to collect assessments, send collection letters and file liens against the properties of delinquent owners.

Even minor mistakes in an accounting may lead to liability. Any attempt to collect an amount, including any interest, fee charge, or expense incidental to the principal obligation is considered a violation of the FDCPA unless such amount is expressly authorized by the agreement creating the debt or is permitted by law.

A debt collector can also be liable for collecting debt in a manner not authorized by law. For example, Civil Code Section 1367(c) states that the Association cannot treat disciplinary fines as assessments and cannot use nonjudicial foreclosure to enforce a lien for fines. Therefore, it is very important that property managers and attorneys do not include fines when demanding payment in a pre lien letter. Also, this cannot be included when filing a lien for delinquent assessments. Many associations include fines in the monthly statement sent to the homeowner.

We recommend that the association or property manager adopt procedures to insure that an improper demand for payment of fines does not occur. One method would be to simply keep a separate accounting for fines and send the homeowner two different statements.

What does the Act prohibit?

When collecting assessments, care should be taken to avoid any behavior in conjunction with collecting a debt that could be construed as harassment. An example of harassment might be contacting someone other than between 8:00 AM and 9:00 PM at their home.

How can I avoid liability?

The "do's" and "don'ts" mandated by the statute are numerous. However, this article will only address those portions of the Act which are relevant to the collection of delinquent assessments.

I. Notice and Validation of the Debt

A "debt collector," where the purpose of the communication is the collection of a consumer debt, is required to give written notice, on a one-time basis, to a consumer, within five (5) days after the initial communication (unless the information has been contained in the initial communication or the consumer has paid the debt), which notice shall contain the following information:

1. the amount of the debt;
   
2. the name of the creditor to whom the debt is owed;
   
3. a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
   
4. a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
   
5. a statement that, upon the consumer's written request within the thirty day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

Much of this information is already required to be in the Pre Lien letter required by Civil Code Section 1367. Nonetheless, property managers should review all of their form letters to be in compliance with the FDCPA.

If a consumer notifies the debt collector in writing within the thirty-day period that all, or any portion of the debt is disputed or, if the consumer requests the name and address of the original creditor, the debt collector must cease collection of the debt until verification of the debt is obtained, or the name and address of the original creditor is secured, and is mailed by the debt collector to the consumer.

The failure of a homeowner to dispute the validity of the debt, however, may not be construed by a Court to be an admission of liability by the consumer.

II. Verbal and Written Disclosure

In all oral and written communications made to collect a debt or to obtain information about a consumer, the debt collector must make a statement that he or she is attempting to collect a debt and that any information obtained will be used for that purpose. There is no prescribed language for such a statement but the most commonly used phrase tracks the language of the statute, i.e., ..." This communication is an attempt to collect a debt and any information obtained will be used for that purpose." Such a statement is generally referred to as the consumer's "mini-Miranda" warning. In all subsequent communications with the delinquent homeowner, the debt collector must disclose that ..."This communication is from a debt collector."

Attorneys and property managers who are involved either in the collection process or with foreclosures should be alert to their obligations under the Act. Once the first contact has been made with a delinquent homeowner, a written validation notice must be sent to the delinquent homeowner, on a one-time basis, within five days (which must also contain the mini-Miranda warning). Thereafter, all communications with a delinquent homeowner, whether written or oral, must contain the "mini-Miranda" warning. This includes telephone conversations, correspondence, demand letters, stipulations, notices, discovery, receipts of payment and post-judgment remedies.

What happens if I violate the Act?

Violation of the FDCPA with respect to any person will subject the "debt collector" to civil liability to that person. A court may award damages equal to the sum of:

1. any actual damages sustained by such person as a result of such failure;
   
2. in the case of any action by any individual, such additional damages as the court may allow, but not exceeding $1,000.00; or
   
3. in the case of a class action, (i) such amount for each named plaintiff as could be recovered in an action by an individual and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000.00 or one percent of the net worth of the debt collector; and
   
4. in the case of any successful action to enforce the foregoing liability, the costs of the action together with a reasonable attorney's fee as determined by the court.

Actual damages may include an award for personal humiliation, mental anguish or emotional distress as well as for other related injuries. Violation of the FDCPA need not be intentional since intent need not be demonstrated for a party to be entitled to damages. Reasonable attorney's fees may also be recoverable.

But what happens if I didn't know?

In determining the amount of liability, a court shall consider, among other relevant factors:

The frequency and persistence of non-compliance by the debt collector, the nature of such non-compliance, and the extent to which such non-compliance was intentional. In the case of a class action, the Court may consider the frequency and persistence of non-compliance by the debt collector, the nature of such non compliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's non-compliance was intentional.

Liability under the statute can be avoided if a debt collector can show the violation was not intentional and resulted from a bona fide error.

Conclusion

The Fair Debt Collection Practices Act is a complex law that contains many pitfalls for the unwary property manager or attorney. The collection policies and procedures of the Association and property management representative should be reviewed carefully by the Association's attorney. If there are any questions about compliance with the Act, counsel should be consulted immediately.

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LEGISLATIVE UPDATE: Assembly Bill 76: Defect Disclosures to Potential Buyers - Signed into law on 10/03/97

This bill, introduced by Assembly Member Miller, has four components. The act amends Sections 1368 and 1375 which deal with "seller disclosure" and "defect lawsuit meeting and notice prior to filing suit" respectively. Added to this bill were Sections 1363.1 which requires "submittal of property manager qualifications" and 1375.1 requiring a "repair list and timetable" after settling a construction defect lawsuit.

Qualifications of Property Managers - Enacts Civil Code Section 1363.1. Before entering into a contract with an association, the prospective property manager must submit a written statement to the Board of Directors stating qualifications such as professional licenses, certifications or designations.

Seller Discloses - Amends Civil Code Section 1368. If the Association has composed a preliminary list of construction defects as part of the "Calderon Process" (prelitigation meet and confer process), then the seller of a unit must provide a copy of the list to a potential buyer.

Repair List and Timetable - Adds Civil Code Section 1375.1. Requires the Association, after settling a construction defect lawsuit, to disclose to members a list of defects and an estimated timetable for repair of the defects.

Defect Lawsuit Meeting and Notice - Amends Civil Code Section 1375. Existing law requires an Association to have a meeting of the membership before filing a construction defect lawsuit in order to discuss options available to address defect problems before filing a construction defect lawsuit. This bill would also require the Association to include a statement in the notice of the meeting to discuss foreseeable alternatives to pay for those options.

Senate Bill 1025: Assessment Collections - Signed into law on 08/02/97

This bill allows an association to record a statement with prescribed information regarding the HOA with the county recorder's office. This statement may include the association name, manager's name, address and phone number, and other information that would assist in escrow closing and facilitate assessment collection through escrow.

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Governor Vetoes Bill to Modify the "Calderon Process"

by Kent H. Thaeler

On September 13th the California Assembly passed AB 594, which had previously been passed by the Senate on September 10th. The Bill was then sent to the Governor who, unexpectedly, vetoed it. This piece of legislation would have made several significant changes to the manner in which Associations must pursue construction defect issues and represented the first major refinement of the "Calderon Process," which was originally enacted several years ago as Civil Code Section 1375.

Under the original legislation, Associations were required to notify developers of construction-related problems and offer to mediate a resolution of these issues within a time frame which was outlined in the code section. However, in our experience, this time frame had to be regularly extended in order to comply with the various provisions. Under the proposed act, an absolute limit of 180 days was specified after which the Association would automatically be relieved of any further obligations under the section and could thereafter file suit if so desired. The new legislation would also have prohibited the parties from extending this 180-day period of time thus compelling both sides to move the resolution process along without delay.

In another significant change, the builder/developer would have been required to give notice of the Association's claims to each of the subcontractors who performed the actual work of construction on the project and whose work might have been at issue, as well as give notice to each of the insurance carriers who issued policies which might cover the claims. The notice thus provided would have also obligated the parties and their insurance carriers to become involved in the mediation process.

Finally, had the Governor signed the bill into law, it would have given the Association the right to demand various construction related documents to be produced by the developer/builder as a condition of mediating a resolution of the issues. This would have included the production of building plans, soils and engineering reports, structural calculations, etc.

Although the Bill would have also made other changes to the manner in which construction defect litigation is handled after an actual lawsuit is filed, the changes to the prefiling procedure would likely have proven the most beneficial to Associations who are faced with construction-related problems. The new process would have been more comprehensive than the original legislation by forcing the involvement of subcontractors and insurance carriers and imposing an absolute, 180 day, time frame to ensure that the process proceeded without undue delay.

In all, the bill appears to have been a well intentioned effort to address some significant shortcomings of the original legislation and the Governor's action was, thus, surprising. For more information about the "Calderon Process," or to receive a copy of the language of the vetoed bill, please feel free to call.

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New Faces

Leslee A. Noland, Esq.

La Mesa Office

Leslee A. Noland is a full time attorney with Anderson & Kriger in the San Diego Construction Defect Department. She began her legal career as an independent contract attorney working for other litigation attorneys in the areas of corporate, real estate, and civil law while also maintaining a small client base of her own. Most recently she has worked primarily in the construction defect litigation field for several large, well established, San Diego firms.

Attorney Noland graduated from San Diego State University in 1986 with a B.S. Degree in Business Management, with an emphasis in organizational behavior. In 1991 she graduated from National University School of Law with a Juris Doctorate. During the time that she attended San Diego State and National University she worked full time in the banking industry in supervision and management while also attending school at night. This valuable business experience has proven to be an asset in her legal career.

Community minded, Miss Noland volunteers time and legal expertise to the St. Germaines Auxiliary which is a foundation focused towards serving the needs of abused and/or neglected children in the San Diego area. Leslee spends much of her spare time volunteering at the elementary school of her daughter Taylor. Other interests include love of reading, exercising and gourmet cooking.

Mary M. Best, Esq.

Temecula Office

Mary Best joined the Anderson & Kriger Construction Defect Litigation Team several months ago as lead associate attorney in the Temecula office.

Mary graduated with honors from the University of Wisconsin with a B.A. in English and Journalism and attained her law degree from the University of San Diego School of Law in 1983. Prior to joining A&K Mary worked in the area of civil litigation with several San Diego firms, and in her own law practice. Her litigation and trial practice emphasized all areas of real property law, including construction defect cases. Mary sits as a judge pro tem for the San Diego Municipal Court and as an arbitrator for the San Diego Superior Court and the San Diego Bar Association.

On a personal note, Mary Best is married to an attorney who works for the County of San Diego. They have three sons: Brendan (16), Cole (8), and Evan (5). In her spare time Mary can be found chauffeuring her children to various sporting events and serving as the soccer "mom" for one team. She also loves to read and is an avid tennis player.

Valerie Bangma (formerly Mouzoon)

Paralegal, Ontario Office

Valerie Bangma is the primary paralegal in the Ontario office working on construction defect cases with Attorney Bill Sickinger and Senior Partner, Clayton Anderson. Valerie also assists Joel Kriger in community association legal work, including seminars for managers and board members, and is active in the Greater Inland Empire Chapter of CAI where she sits on the Media Committee. Before joining Anderson & Kriger, she worked for Shapiro & Miles, a Foreclosure Corporation in Santa Ana, California in the Bankruptcy Department. Her responsibilities included working on Motion for Relief from the Automatic Stay for clients such as Chase Manhattan Bank, Countrywide, and Homeside Lending, Inc.

Valerie presently is working on her Bachelors Degree in Business Administration at the University of La Verne.

In September Valerie was married to Marty Bangma. The Bangma's celebrated their Reception at the Doubletree Hotel in Ontario with a sit down dinner, live DJ, and champagne toasts for future happiness. The newlyweds honeymooned for two weeks in Hawaii where they enjoyed many outdoor activities.

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Ask the Attorney

by Attorney Carl H. Starrett, II

(Send in your questions to A&K News to be answered by our attorneys or e-mail us at: a-k@a-k.com or call us at 1-800-425-6397 San Diego County, 1-800-425-6397 Riverside County.

All questions are either submitted by clients or are questions, of a general nature, commonly asked our attorneys.)

Q

We sued in small claims to collect the delinquent assessments. We have the judgment. How do we collect?

A

Judgments in small claims court become final 30 days after the Notice of Entry of Judgment. Assuming the judgment debtor does not appeal, there are many ways that the Association can collect the judgment. Voluntary Payment: Even after you have obtained the judgment, you can still make payment arrangements with the debtor. The debtor can also file a motion to request permission to pay the judgment in installments. Abstract of Judgment: This document is issued by the court clerk for a fee of $7.00. Also referred to as a judgment lien on real property, it creates a lien and clouds title to any real property owned by the debtor within the county in which it is recorded. This is particularly helpful if the debtor owns real property besides the condominium. The debtor cannot sell or refinance the property without negotiating with the creditor or paying off the lien. Judgment Lien on Personal Property: This is particularly useful when the debtor owns a business. When filed with the Secretary of State, this document creates a lien on accounts receivable, equipment, farm products, inventory and negotiable documents of title. It can make it difficult for the debtor to obtain credit after this document has been filed and served. The filing fee is $20.00. Writ of Execution: This document is issued by the court clerk for a fee of $7.00. It tells the Marshal or Sheriff how much to collect on the judgment. A Writ of Execution is required for most judgment enforcement procedures such a wage garnishment or bank account seizures. Bank Account Levy: Upon delivery of the Writ of Execution, written instructions and a fee of $26.00, the Marshal will issue a Notice of Levy which freezes the bank accounts of the judgment debtor. However, the Marshal must go to the branch where the account is held in order to properly levy on the account. In one recent case, an alert property manager kept a photocopy of a check from a homeowner who was delinquent. Using this information, our firm was able to have the Marshal seize the money in the account and pay off a $1700 judgment. Bank account searches through a private investigator cost as little as $100. In another case, our firm spent $125 for a bank account search and was able to reach an account for over $7,000. Earnings Withhold Order: Also called a wage garnishment, the Marshal will notify the employer to withhold money from the debtor's pay check. The Marshal's fee for this service is only $21.00 and the employer can withhold up to 25% of the debtor's net pay. In a recent case, our office started a wage garnishment on behalf of a client. The Marshal served the Earnings Withhold Order on a Tuesday. The judgment debtor delivered a cashier's check to the Marshal on the following Monday. Rent Garnishment: Several of our clients have been successful in obtaining rent garnishments. If the debtor owns rental property, the Marshal will contact the renter to force payment of the monthly rent to the Marshal's office. In one case, a client was able to collect $500 as a partial payment toward the judgment. Till Tap/Keeper Levy: If the debtor owns a business, the Marshal can take money directly from the cash register, which is commonly called a till tap. For larger judgments, the Marshal will leave a "keeper" in charge of the business for up to 8 hours. The "keeper" will collect all money that comes into the cash register for that day. In one case, a client discovered that the debtor owned a restaurant and used a keeper levy to collect over $800 to satisfy a small claims judgment. Vehicle Levy: In extreme cases, the creditor can even have the Marshal seize the judgment debtor's car and have it sold at auction. This can be very expensive and is better suited for large judgments. Asset Investigation: Once an asset is identified, the process to collect and sell the asset is fairly simple. The trick is to locate the asset. Our firm has connections with numerous private investigators that will perform assets searches for as little as $100. Our firm has access to numerous computer databases to gather information on a judgment debtor. Also, talk to the person's neighbors. Find out where the debtor works. Every bit of information will help you to be successful in collecting your judgment.

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There's a Storm Blowing In - Be Ready for El Niño

27 Helpful Preparation Tips

Is your home ready for the wet season ahead? You've still got time to batten down the hatches if you start now. Here are some ways to prepare your home for the arrival of El Nino.

1. Move valuables and appliances out of the basement of your home or business if it is prone to flooding.
2. Elevate the main breaker or fuse box and the utility meters above the anticipated flood level in your home or business so that flood water won't damage your utilities.
3. Buy flood insurance to cover the value of your home and its contents. Not only will insurance give you greater peace of mind, but it will also greatly speed your recovery if a flood occurs.
4. Check downspouts, area drains and gutters for debris. Clearing debris from downspout, area drains and gutters before the big storms hit can prevent many foundation and roof problems.
5. Gutters actually serve two purposes: they keep water off the side of the building and away from the foundation of the building. Direct downspout away from the foundation to minimize foundation erosion.
6. Also check the condition of your gutters. If there's extensive rust in the bottom of the gutters, replace them.
7. Check out the roof. Most people don't think about checking the roof until water is pouring into the living room. Homeowners should check their roofs at least once or twice a year. A steep roof or a roof with a slippery surface is hard to examine and best left to the professional. If it's a wood shingle roof with any moss on it, you'll slide right off and have no way to stop.
8. If you do inspect the roof yourself, check for the following: make sure all pipes, vents, chimneys and skylights are attached properly. All flashing should be in place and no vents are blocked. Call a professional roofer if you are uneasy climbing on a ladder.
9. Both new and older roofs should be checked regularly by professionals for signs of trouble. Roofs less than 10 years old should be checked by a professional roofer at least every five years. After that, roofs should be checked more often. (The average life for a roof is about 15 to 20 years.)
10. Trim all tree limbs and overhanging branches away from the roof and the chimney.
11. Inspect and clean the chimney. When the rain is driving down and the wind is shaking your shutters, you're going to want to light a nice warm fire. That's not the best time to find out that the flue is blocked. Excessive soot buildup in the chimney is a fire hazard in both new and old homes.
12. Check windows, door frames and base-boards. Before the rains come, walk around the perimeter of your home, checking windows and doors for cracks or broken seals. Horizontal rain or windblown rain will easily penetrate windows, especially French doors. Fill simple cracks with caulking (available at hardware stores for around $10). Sometimes, weather stripping may be needed.
13. Check retaining walls and fences. If you live on a hillside or in an area prone to mud slides, check the condition of any retaining walls. Retaining walls should be checked at the beginning of every rainy season. Clear all weep holes of debris and make sure there are no major vertical or horizontal cracks. If you find any, call a licensed contractor. Make sure that the drainage area behind the wall is free and clear so that surface water has somewhere to go and won't collect behind the wall.
14. Fences also should be in good condition. If you have a windstorm, a good strong wind can blow your fence over. Try shaking the top of fence posts. Too much movement more than 5 % out of plumb is not a good sign. You may have to reinforce the posts.
15. Clear walkways and check stair hand-rails. Clear all walk-ways around your home before the big storms hit. Also make sure the walkway surface is as clean as possible. Walkways with brick end up with a lot of algae. And when algae gets wet, it gets slippery. Cleaning the walk with a bleach solution or weed killer should eliminate this problem. Test a small area first in order to make sure the bleach solution won't discolor the walk.
16. Stairs more than five feet wide need stair handrails. Check existing handrails to make sure they are stable. If not, secure or replace them.
17. Stock up on supplies. It never hurts to be prepared especially if you live in an area that floods frequently. Have plastic sheeting, plywood, sandbags and lumber on hand for any emergency waterproofing you may need to do. During big storms, many hardware and home improvement stores (if you can even get to them) may run out of such items.
18. Many people have been without power so often that they have their own small generator. If you are planning to install a generator, contact the local gas and electric company first so your line can be tagged to alert workers that you have a generator. If generators are not connected properly, they can be a hazard for the electricity company repair crews who are restoring electric service.
19. Have plenty of flashlights and fresh batteries on hand for emergency lighting. Flashlights are much safer than using candles or lanterns.
20. If you have a fireplace or wood stove, have a good supply of dry firewood ready for heating your home.
21. Keep a portable radio and fresh batteries handy for storm updates.
22. Perform a general cleanup. Simply tidying the back yard can prevent a lot of damage during high winds and heavy rains. Remove garden debris so it doesn't blow around your yard or pile up and collect water. The home garden also can suffer a great deal of damage after a big storm. Plants may be waterlogged, topsoil and hillsides can be washed away, trees can fall and patio furniture can blow away.
23. Consider installing landscape drains. If an area of your yard is low or subject to flooding, install a landscape drain that collects and redirects water to another area. Consult with a landscape contractor or drainage specialist for advice. Once you know what needs to be done, you can probably do the work yourself.
24. Plant on raised beds. If you plant anything in the next month or two, plant on a raised mound of soil, especially if the plant is fussy about drainage. Otherwise, the plant may drown this winter.
25. Obtain sandbags and plastic sheeting. If you need to protect a slope from sliding or divert water from lowlying areas, obtain plastic sheeting and sandbags before the storms begin. Your local public works agency may offer free sand bags to residents. Contact your city for information about local sources.
26. Locate the "off" button on your sprinklers. Once the rains begin, turn off your watering system. Your landscape doesn't need the extra water, and you don't need the water bills.
27. Secure patio furniture, trash cans, bird baths and other garden accessories. In high winds, garden accessories will not only fall over and break, but they also can hit and damage plants.

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Settlements & Awards

By Jane Austin, Lead Paralegal 

Vista Condo Case Settles

Clayton M. Anderson and Kent H. Thaeler, assisted by Jane E. Austin, lead paralegal at Anderson & Kriger, represented a North San Diego County HOA in a construction defects case against the developer of the property. The action was filed in the San Diego Superior Court at the end of 1995, and trial was set to begin in The Honorable Robert E. May's courtroom in August. Over the weekend preceding the commencement of trial, a settlement offer of $830,000 was made to the Association by defendants and cross-defendants. The Association accepted the offer on the Saturday before trial. A partial settlement of $40,000 had been paid earlier, thereby increasing the full settlement amount to $870,000.

This HOA is a 48-unit condominium project in Vista. The project was mostly constructed and sold during 1988 and 1989. For a number of years, the Association itself dealt with the developer on various construction problems. Anderson & Kriger only became involved when the Association's attempts to resolve these defect issues with the developing entities failed.

The Association's case sought damages for a variety of construction defects, including inadequate and ineffective drainage at the project, major roof failures, with resultant leaks, leaking windows, poorly designed and constructed exterior wooden stairways, and deteriorating fencing due to inappropriate installation. A major concern revolved around the failing ceramic tile installation in the master showers of the units which utilized only mastic.

During his deposition, the tiling contractor hired by the developer to perform the original tile work at the project testified that this mastic installation, by its very nature, could be expected to last less than 10 years.

The Association reports that progress is being made in prioritizing and implementing a repair plan to expeditiously solve the major defect problems. The drainage and roof issues will take precedence due to the anticipated deluge of rain expected as a result of El Nino.

$3,000,000 Settlement for Construction Defects in RV Park

In October, 1993, Clayton M. Anderson filed a construction defects action in the Riverside Superior Court on behalf of a Riverside Recreational Vehicle Park. The lawsuit began in the Temecula offices of Anderson & Kriger, but was moved to the La Mesa office when the case began to snowball because of additional parties and complex issues. Shortly before the case was moved to La Mesa, the firm's lead paralegal, Jane E. Austin, was assigned to assist Mr. Anderson on the case. After several years of vigorous prosecution, the case settled for $3,000,000, in addition to approximately $175,000 in earlier partial settlements.

The Riverside Recreational Vehicle Park is a gated 526-space own-your-own lot RV park for seniors. The park was planned and built by the "development arm" of a local savings & loan and the limited partnership it formed specifically to develop the project. The planning and building of the park occurred from approximately 1984 through 1992, during the height of the savings & loan debacle of the 80s. In addition to the RV spaces themselves, other amenities include two clubhouses, an Olympic-sized pool, two spas, a putting green, private concrete streets and driveways, and lots of landscaping.

The severe cracking and deterioration of the concrete streets and driveways was one of the biggest issues, followed closely by underground utility problems due to misplacement and/or poor installation. The larger of the two clubhouses, an 18,000 square foot building, had numerous architectural and structural problems, including a lack of shear walls to provide lateral stability during seismic events or strong wind storms. At this time, the Association is beginning its work to make the necessary repairs.

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Events

CACM Goes Hollywood...A&K's 101 Lawmations

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The A&K News is written to provide information and education, not legal advice. If you have legal questions or issues, consult a lawyer.

Copyright 2001 by Anderson & Kriger. No part of this publication can be reproduced
without the publisher's permission.

We are proud to be members of:

• Community Associations Institute
• California Association of Community Managers

Attorney Clayton M. Anderson is also a member of:

• Consumer Attorneys of San Diego (CASD)
• San Diego and Riverside Bar Associations.

Call to receive our firm brochure on Community Association Representation and Construction Defect Law.